Trade Desk Inc (TTD)

Financial leverage ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	6,111,950	4,888,690	4,380,680	3,577,340	2,753,640
Total stockholders’ equity	US$ in thousands	2,949,140	2,164,220	2,115,340	1,527,310	1,013,140
Financial leverage ratio		2.07	2.26	2.07	2.34	2.72

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,111,950K ÷ $2,949,140K
= 2.07

The financial leverage ratio of Trade Desk Inc. demonstrates notable fluctuations over the period from December 31, 2020, to December 31, 2024. At the end of 2020, the ratio was 2.72, indicating a relatively high degree of financial leverage, with the company's assets being financed significantly through debt relative to equity. This ratio decreased markedly to 2.34 by the end of 2021 and further declined to 2.07 by December 31, 2022, suggesting a reduction in leverage and a potential shift towards a more conservative capital structure.

However, the ratio increased slightly to 2.26 in 2023, indicating a marginal uptick in leverage, which could reflect increased debt levels or decreased equity. By December 31, 2024, the ratio reverted to approximately 2.07, aligning with the level observed at the end of 2022, thereby implying a stabilization in leverage after the fluctuations observed earlier.

Overall, the data suggests that Trade Desk Inc. has maintained a relatively moderate level of financial leverage over this period, with some periods of reduction followed by slight increases, indicating strategic adjustments in its capital structure without significant or sustained shifts in financial risk.